Latest news with #Tether
Yahoo
a day ago
- Business
- Yahoo
National interests are setting the trajectory of stablecoin and CBDC markets
Among the first US Presidential orders was banning the Federal Reserve's (Fed) digital dollar creation in January 2025 to keep the Central Bank from entering the organically developing digital currencies space. The move signalled a clear break from state-issued digital currencies and an ideological shift toward market-driven innovation. By May, Bitcoin hit another all-time high above $111,000 and the country's top banks—JP Morgan, Bank of America, Citi, and Wells Fargo—announced a joint stablecoin initiative, showing a 180-degree shift from the Democrat-era cryptocurrency sentiment. Not only does this mark a reputational pivot for institutions that once distanced themselves from crypto, but it also underscores how regulatory tailwinds can rapidly reshape institutional strategy. Across the Atlantic, the European Central Bank (ECB) set up new groups to explore digital euro use cases in its most-recent push. Yet, the share of euro-backed stablecoins remains under 1% of the total supply dominated by USD-backed coins (99%+); highlighting the disproportionate influence of US monetary infrastructure on global digital finance. This imbalance has emerged as a silent yet powerful driver of USD demand, especially important at a time when appetite for the dollar is weakening globally amid growing trade wars. The largest US incumbents moving into the crypto space via a stablecoin initiative was anticipated following the most-recent advancement of the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act in the Senate. Years of restrictive regulation on crypto assets has left traditional banks with no choice but to campaign against the industry, which is arguably the biggest competitive threat to traditional finance and its institutions yet. The four banks' joint stablecoin announcement now signals a systemic shift, as the GENIUS Act is set to bring long-awaited federal oversight to the stablecoin market in the form of consumer protection and national security measures. The timing suggests a strategic play of US banks aligning with federal efforts to regulate stablecoins in an attempt to steer it in their favour. Meanwhile, Europe's MiCA (Markets in Crypto-Assets) regulation proved too restrictive for by far the largest stablecoin Tether to comply, which is now unavailable on European exchanges. Though, the biggest demand for Tether's services is concentrated in emerging markets out of necessity for fast, cheap, and reliable transfers. With that said, the ECB's two, new 'Pioneers' and 'Visionaries' workstreams are currently looking for and testing potential functionalities and use cases for the digital euro that aims to launch by the end of the year. The scope of these trials suggests that beyond consumer payments, the ECB is considering applications in programmable finance, automated tax collection, and cross-border trade—all areas where it seeks to reduce its dependence on US-based infrastructure. So far, the trajectory of private vs government-issued digital currencies shows strong correlation with national interests and its regulatory backing, which is expected to continue shaping stablecoins' and Central Bank Digital Currencies' (CBDCs) regional development paths moving forward. The ECB is unlikely to relax MiCA rules as it recently named the digital euro one of the three structural economic policy priorities, amid their ongoing push for payments independence from US providers. On the other hand, creating a supportive regulatory environment for stablecoins aligns with the Fed's monetary interests too; given that stablecoin issuers are set to become the largest US Treasury securities holders globally by 2030 as foreign government demand drops. This makes stablecoins not just a tech innovation, but an increasingly vital pillar of US fiscal stability. Blandina Hanna Szalay is an analyst, banking & payments, at GlobalData "National interests are setting the trajectory of stablecoin and CBDC markets" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
a day ago
- Business
- Yahoo
AI Crypto Livepeer Explodes 150% on Upbit Listing
The native token of Livepeer LPT, a decentralized artificial intelligence video processing protocol, soared on Friday to its strongest price in four months on exchange listing and other catalyst. The token advanced 150% over the past 24 hours, hitting a session high at $14.20, CoinDesk data shows. The surge defied a slump in the broader crypto market, with bitcoin BTC sliding 2% below $106,000 and the CoinDesk 20 Index declining 3.5% during the same period. Most artificial intelligence-linked tokens were down 5%-10%. The price action happened as popular Korean exchange Upbit introduced trading with the token against KRW and Tether's USDT on its platform earlier on Friday. Joel Kruger, a crypto market strategist, highlighted that asset manager Grayscale introduced earlier this week its Artificial Intelligence Crypto Sector, with Livepeer being included among the 20 cryptocurrencies. Ecosystem developer Livepeer Foundation's advisory boards also kicked into gear, starting a community survey about the platform's strategic direction, he pointed out.
Yahoo
a day ago
- Business
- Yahoo
USDT Price Prediction - What could affect USDT's future price?
USDT price prediction remains stable near its $1 peg, though Tether USDt faces risks from regulatory changes, reserve management scrutiny, and rising competition. Its market dominance and strategic positioning continue to provide a layer of resilience. - Regulatory crackdowns could destabilize operations or demand - Reserve transparency remains critical for maintaining trust - Banking partnerships and institutional adoption may offset risks The GENIUS Act advancing in the U.S. Senate would mandate 100% reserve backing and federal oversight for large stablecoin issuers like Tether. While this could enhance credibility, compliance costs might pressure profitability. Globally, the EU's MiCA regulations and Thailand's approval of USDt for trading create a patchwork of requirements that could complicate cross-border liquidity. Tether's exposure to U.S. jurisdiction via the proposed 'Genius Stablecoin Act: UNCHAINED' introduces legal uncertainty, though CEO Paolo Ardoino's plans for a compliant institutional stablecoin suggest proactive adaptation. Tether holds $120B in U.S. Treasuries – more than Germany's national holdings. While this anchors stability, 80%+ exposure to government securities creates interest rate risk if the Fed cuts rates. Competitors like bank consortium stablecoins (JPMorgan, BofA) and CBDCs could erode Tether's 68% stablecoin market share, though its first-mover advantage and 75.7B USDT on Tron for low-cost transactions provide defensive moats. USDT price prediction depends on the stablecoin's ability to navigate regulatory landmines while maintaining reserve credibility and blockchain agility. Over the next 6–12 months, Tether's treasury-heavy strategy and shift toward institutional products will be tested against rising competition and mounting compliance pressures. USDT price prediction reflects mixed sentiment—bullish due to Tether USDt's market dominance and financial strength, yet tempered by persistent regulatory concerns. - Bullish: Record Treasury reserves ($120B) and Tron blockchain dominance (75.7B USDT). - Bearish: Regulatory scrutiny over transparency and potential deposit outflows from banks. - Neutral: Expansion into AI, telecom, and compliant stablecoins diversifies risk. Market sentiment leans cautiously bullish due to USDT's $120B U.S. Treasury reserves and 75.7B USDT minted on Tron (surpassing Ethereum), driven by lower fees and faster transactions. However, skepticism persists around audit transparency and regulatory risks, with the Federal Reserve warning stablecoins could destabilize banks by accelerating deposit outflows. Tron's dominance: 75.7B USDT now exists on Tron (vs. Ethereum), favored for cost efficiency. Analysts note this could shift blockchain competition dynamics. Regulatory pressure: U.S. senators are pushing the GENIUS Act to mandate Treasury-backed reserves for stablecoins, which Tether already fulfills. Diversification: Tether's ventures into AI, telecom, and gold-backed tokens (e.g., XAUt in Thailand) aim to reduce reliance on USDT. Paolo Ardoino (Tether CEO): Emphasizes transparency efforts (audit talks with Big Four firms) and plans for a compliant stablecoin targeting institutions. U.S. lawmakers: Bipartisan support for the GENIUS Act reflects urgency to regulate stablecoins, potentially legitimizing USDT but imposing stricter oversight. Banks: Fifth Third Bancorp and Russian banks now integrate USDT for cross-border payments and investment products, signaling institutional adoption. USDT price prediction is closely tied to the stablecoin's dominance, which hinges on Treasury-backed stability and Tron's efficiency. However, its long-term resilience will depend on regulatory clarity and successful diversification into compliant products. Will the GENIUS Act's passage solidify USDT's legitimacy—or expose new vulnerabilities? To get the latest update on Tether, visit our USDT currency page. Content created: 30th May 2025 Disclaimer: Content generated by CMC AI. CMC AI can make mistakes, please DYOR. Not financial advice. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Business
- Forbes
Stablecoin Giant Tether To Invest Billions In Bitcoin Mining
Bitcoin mining on computer screen. Digital crypto currency, cyber money and digital banking concept ... More 3d illustration with glitch effect. Tether will invest billions of dollars in bitcoin mining over the next few years after chief executive Paolo Ardoino told the 'Bitcoin 2025' conference the company intends to surpass every operator by hashrate. On the Las Vegas main stage Thursday, Ardoino remarked that Tether will soon become the "largest bitcoin miner in the world." He went on to explain that profits from the $120 billion USDT reserve will continue to be reinvested 'heavily' into bitcoin. The company currently holds over 100,000 BTC on its balance sheet, acquired using profits not its stablecoin reserves. Back in 2023 Tether committed an initial $500 million build-out across Uruguay, Paraguay and El Salvador, a program that includes new substations and minority stakes in established farms. The round was the first tranche of a 'multi-billion' reinvestment pipeline, which has since continued. Engineering plans target 450 megawatts of installed capacity by the fourth quarter of 2025, enough to push the firm toward one percent of global hashrate. The war chest behind the strategy is substantial as public filings show bitcoin worth roughly $10.5 billion at current prices, and the issuer has pledged to continue to direct up to 15 percent of net realized operating profit toward additional coin purchases and hardware. Locating farms beside hydro in Paraguay, wind in Uruguay and geothermal in El Salvador allows Tether to pitch renewable generation to regulators tracking MiCA-style sustainability metrics while reducing power-purchase risk. The firm has also diversified through investments in other bitcoin mining companies such as its $100 million investment into Bitdeer. Internal projections put Tether's goal above its main competitors such as Marathon Digital's reported 25 EH/s and Riot Platforms' 21 EH/s, shifting the competitive map for public miners that rely on capital markets rather than cash reserves. Ardoino appears confident in this vision, he told the Vegas bitcoin crowd that 'by the end of this year, we may become the largest Bitcoin mining company in the world - surpassing all listed companies.' He confirmed Tether's rationale for bitcoin mining is routed in its desire to participate actively in the network. The stablecoin issuer, 'born from Bitcoin,' believes the top digital asset is 'perfect' and that gold is now the 'primitive bitcoin.' Ardoino opined, bitcoin is not 'digital gold' because gold 'does not compete with bitcoin, it competes with fiat currency.' Still, execution questions remain within Tether's strategy as ASIC supply is tight and power-purchase agreements in Latin America can be politically fragile. However, auditors won't have to consider depreciating miners sitting alongside U.S. Treasuries in the reserve mix as Tether does not use bitcoin to protect the USDT peg, it invests stablecoin profits into bitcoin.
Time of India
a day ago
- Business
- Time of India
SEC Drops Lawsuit Against Binance, a Crypto Exchange
The SEC dismissed its lawsuit against Binance and Changpeng Zhao, signaling a retreat on crypto enforcement. This follows Zhao's guilty plea on money-laundering charges and a broader rollback of SEC regulations under the Trump administration. The Trump family's increasing involvement in the crypto industry, including deals and investments, raises conflict-of-interest concerns amid eased regulations. Tired of too many ads? Remove Ads Crypto TrackerPowered By TOP COINS TOP COIN SETS Tether 85.64 ( 0.22 %) Buy BNB 57,218 ( -2.56 %) Buy Bitcoin 8,998,325 ( -2.58 %) Buy Ethereum 224,117 ( -3.82 %) Buy XRP 187.07 ( -4.33 %) Buy Tired of too many ads? Remove Ads The Trump administration's retreat on crypto enforcement continued Thursday as the Securities and Exchange Commission announced that it was dismissing a lawsuit it filed two years ago against the giant cryptocurrency exchange Binance and its founder, Changpeng SEC had accused Binance and Zhao of lying to regulators about its operations in the United States and mishandling customer commission, the nation's top securities regulator, has moved to dismiss more than a dozen lawsuits or investigations against crypto firms. In February, it asked a federal judge to stay the litigation against Binance as it reassessed its approach to regulating the fast-growing crypto the four-page dismissal notice, the regulator said it was dropping the litigation "in the exercise of its discretion and as a policy matter."The dismissal is a signature moment for the SEC's regulatory rollback given the prominence of Zhao, a multibillionaire, in the crypto a Chinese-born Canadian who is also known as CZ, pleaded guilty in November 2023 to violating federal money-laundering charges. But he spent just four months in federal prison and emerged with most of his financial empire month, World Liberty Financial , a crypto firm started by President Donald Trump's family, announced that it was helping to facilitate a $2 billion business deal between Binance and MGX, an Abu Dubai-backed fund. Executives for World Liberty Financial also met with once a critic of the crypto industry, reversed his stance during last year's presidential campaign and vowed to let the industry flourish and roll back much of the SEC's regulatory enforcement and his family also have become major financial boosters of the crypto industry. Besides World Liberty Financial, they are backing a so-called meme coin that was introduced just days before Trump's inauguration in week, the president hosted a dinner at his Virginia golf club, and among the guests were the highest-paying customers of his personal cryptocurrency, known as $TRUMP. The event helped promote sales of the meme coin, which has become a vehicle for investors, including many foreigners, to funnel money to his Bitcoin, a crypto firm co-founded by Eric Trump, one of the president's sons, said this month that it planned to go this week, Trump's social media company, Trump Media & Technology Group , said it had raised $2.5 billion from investors to buy up bitcoin, essentially as an investment strategy. Trump Media, a money-losing venture, is the parent company of Truth is the company's largest shareholder, with a stake worth more than $2 billion. His shares are held in a trust managed by his eldest son, Donald Jr., who is a board have said the Trump family's involvement with crypto poses a potential conflict of interest given the SEC's moves easing the regulation of digital article originally appeared in The New York Times.
